Little Britain on the Costas' deters many overseas buyers

Published 21st Jul 2007

Many Britons are snubbing the chance of buying homes in Spain - because it is too full of UK ex-pats already.
However 4 in 10 mortgage advisers see Spain as the best long term market for investment - ahead of France and Portugal.

Gerry Bell, British Mortgages Abroad, GE Money Home Lending, said: "Spain's popularity with Britons is both its main advantage and its biggest downfall. Many are attracted to the country because they know others who have settled there or are familiar with the destination, others see it as a good long-term investment or simply enjoy the climate and culture.

“However many see Spain - rightly or wrongly - as being a ‘Little Britain on the Costas’ and are keen to find somewhere with its own distinct culture and feel, rather than one which is so heavily influenced by a big ex-pat population."

New research from GE Money Home Lending reveals that although Spain still reigns as the top destination for holiday-home owners buying abroad, an overwhelming 82 per cent of consumers who would choose not to buy property there claimed it was because of the English ‘pub-frequenting, fish-and-chip-loving’ culture of ex-pat communities in the country.

What’s hot and what’s not …
Overall, Spain remains the top place for people looking to buy abroad, with people citing its good climate, cheap travel and bargain property prices - some 36 per cent claim they would consider buying a property there.

However GE Money’s research indicates that many are being put off by the ‘Little Britain’ feel of the Costas and are increasingly focusing on lifestyle areas like climate, culture and food - as well as practical issues like affordability property and cheap travel.

France and Italy are good examples of these changing priorities. France and Italy were the second and third most popular respectively, but were specifically picked out by consumers for their attractive culture, convenient travel links and as having the best cuisine of all countries.

Despite this, there does appears to be some Anglo-French ill-feeling with over half of those who were loath to invest in France claiming it was because they do not like French people! Germany has the same problem with 42 per cent being put off by the people. On the contrary no negative comments were made about Italy or Portugal.

When it comes to other countries, perceived danger is the leading reason why Britons would avoid a particular country when considering buying a foreign property. Almost 1 in 5 claimed they would steer clear of a country if they thought the language was too hard to learn and, perhaps unsurprisingly for this island nation, 14 per cent of those quizzed would not buy in a particular country as they do not like the people in it.

So despite many pundits predicting good growth in this region, Dubai tops the list of the most unappealing countries to buy a property in, with some 15 per cent of those questioned claimed they would not invest there. It was branded too hot, too dangerous and too far away for most, while others said the language was too hard to learn.

Short term v Long term forecast …
Independent mortgage brokers predict Bulgaria will have the strongest house price inflation in the next year, followed by Spain, Romania, France and the Czech Republic. The research also showed that overall, Spain still tops the poll for the best long-term investment option.

Despite strong growth in emerging Eastern European markets, independent mortgage brokers maintain that countries such as Spain and France represent the most solid investment. Developing territories such as Dubai, Florida and Croatia rate strongest in terms of high inflation in the coming year, but it is the constant trend of the British desire to move to Spain that secures the Western European market.

Even though short term property inflation may not be as high in these countries, the security of investing in areas that are familiar to foreign investors, factored with a reliable climate and fewer language barriers, push these countries ahead of the rest.

When looking at longer-term house price inflation predictions, GE Money Home Lending’s research shows that Britons would do well to stick to tried and tested countries like Spain, France and Portugal when considering a foreign property.

Gerry said: “Although new emerging Eastern European markets are looked upon as good short term investment opportunities, we can see that most Brits are looking towards their dream holiday home as a location they can retire to in future years and for ease of living whilst abroad.

“What is interesting is the emergence of Florida as a key holiday home destination as flights to the US become more affordable, strengthened by the current excellent exchange rate and the ease of conversing in the same language.”
By Jennifer Lowe

Source: ' What Mortgage '

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